China Plans Charm Offensive to Smooth Ties

HUAIROU, China—A measure of China's ambitions for 2014 can be seen rising from the brown earth in suburban Beijing: Building crews are erecting a dozen luxury villas in traditional courtyard style behind an imposing gate worthy of the Forbidden City.

The site is where President Xi Jinping plans to host Asia-Pacific leaders in October, the kind of event used in the past to impress domestic and global audiences about China's rising...